Destiny Closes Private Placement Financing with First Reserve Corporation.CALGARY, ALBERTA--(BUSINESS WIRE)--July 6, 1999-- Destiny Resource Ser(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DSC (1) (Digital Signal Controller) A microcontroller and DSP combined on the same chip. It adds the interrupt-driven capabilities normally associated with a microcontroller to a DSP, which typically functions as a continuous process. See microcontroller and DSP. .) Destiny Resource Services Corp. ("Destiny") announced today that it had closed the Private Placement financing ("the financing") with First Reserve Corporation ("First Reserve") previously announced June 03, 1999. The financing consists of $10 million in common stock of Destiny at $1.28 per share and $10 million in Senior Subordinated Debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". repayable on July 2, 2004 and carrying an annual interest rate of 8 percent paid semi-annually. After giving effect to the transaction, First Reserve holds approximately 35 percent of Destiny's issued and outstanding common shares. At the same time, Destiny announced that it had used $10 million of the proceeds of the financing to repay the convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. held by Citibank Canada Citibank Canada is a unit of Citigroup of New York City. The Canadian unit has been operating since 1954, with Canadian headquarters in Toronto. There are also offices in Montreal, Calgary, London, Ontario and Vancouver. with the balance of the funds being used to pay down the companies revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . Destiny Resource Services Corp. is a Calgary based oilfield service company providing essential integrated services to the seismic, exploration and production industries in Canada, the United States, Central and South America, the Middle East, Africa and Southeast Asia. First Reserve Corporation is a private equity firm specializing in the energy industry. Founded in 1980, the firm currently manages a portfolio of energy holdings with a market value in excess of $1.5 billion. The firm is headquartered in Greenwich, Connecticut and also has offices in Houston, Texas and Denver, Colorado. Other First Reserve portfolio companies include TransMontaigne Inc., Weatherford International, Inc., Cal Dive International, Inc., Cardinal Services, Inc. and Pursuit Resources Corp. Raymond James & Associates, Inc. acted as financial advisor and agent to Destiny in this transaction. The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. has neither approved nor disapproved of the information contained herein. |
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